FHA Premium Account Sample Clauses
The FHA Premium Account clause establishes a dedicated account for the collection and management of premiums required under Federal Housing Administration (FHA) insured loans. Typically, this clause outlines how the borrower must deposit the necessary mortgage insurance premiums into a specified account, which the lender then uses to make timely payments to the FHA. By clearly defining the process for handling these funds, the clause ensures compliance with FHA requirements and prevents lapses in insurance coverage, thereby protecting both the lender and borrower from potential financial and legal risks.
FHA Premium Account. The Indenture Trustee has heretofore established with itself in its trust capacity at its corporate trust department a segregated trust account referred to herein as the "FHA Premium Account" for the benefit of the Securityholders and the Securities Insurer. The Indenture Trustee shall at all times maintain the FHA Premium Account as an Eligible Account and shall cause such accounts to be designated as "First Trust of New York, National 77 82 Association, as Indenture Trustee for Mego Mortgage Home Loan Asset Backed Securities, Series 1997-2, FHA Premium Account". No later than the second Business Day preceding each Distribution Date, all amounts on deposit in the Collection Account representing payments by Obligors on Invoiced Loans in respect of premium on FHA Insurance shall be withdrawn by the Indenture Trustee and deposited to the FHA Premium Account. Any and all moneys transferred to the FHA Premium Account pursuant to this Section 5.01(a)(4) and Section 5.01(c)(i)(a) shall be held by the Indenture Trustee in the FHA Premium Account subject to disbursement and withdrawal as herein provided. Amounts deposited to the FHA Premium Account shall be invested in accordance with Section 5.04. Amounts on deposit in the FHA Premium Account shall be withdrawn by the Indenture Trustee, in the amounts required, for application as follows:
(i) to payment to the FHA of any premiums due on the Contract of Insurance in respect of FHA Loans, in such amounts and on such dates as directed by the Master Servicer or Mego; the Indenture Trustee shall apply all amounts on deposit in the related FHA Premium Account to payment to the FHA of any premiums due under the Contract of Insurance as invoiced by FHA and, if, in connection with an FHA Loan, the FHA Insurance with respect to which shall not yet have been transferred to the Contract of Insurance, Mego instructs the Indenture Trustee to pay FHA insurance with respect to such FHA Loan to the related contract of insurance holder, the Indenture Trustee shall make such payment, and Mego and not the Indenture Trustee shall be liable in the event of the failure of such funds to be applied to payment of the premium with respect to such FHA Loan; and
(ii) on the Business Day preceding a Distribution Date that is also the Termination Date, the Indenture Trustee shall withdraw from the FHA Premium Account and deposit in the Note Distribution Account all amounts then on deposit in the FHA Premium Account, whereupon the FHA Premium A...
FHA Premium Account. The Eligible Accounts established and maintained by the Trustee pursuant to Section 4.06(a).
FHA Premium Account. The Trustee has heretofore established with itself in its trust capacity at its corporate trust department two segregated trust accounts each referred to herein as a "FHA Premium Account" for the benefit of the Trust. The Trustee shall at all times maintain each FHA Premium Account as an Eligible Account and shall cause such accounts to be designated as "First Trust of New York, National Association, as Trustee